UPDATE: After two years and nearly 600 first-time savers, we've made the difficult decision to close the MatchSavings.org program. Thank you to all who made the program possible.
Learn More

What is the Impact of Saving?

Historically and still today, the poor are more likely to have access to credit than to a basic savings account. Yet it's savings that really help people break the chains of poverty. Having the opportunity to save in a trustworthy institution means people living in poverty no longer have to take out expensive loans to cover the costs of living, such as children's school fees, medical emergencies or even food. Instead, they become their own interest-free lender, and that makes the small amount of money they have go a lot further.

The impact of saving goes far beyond the individuals you meet on MatchSavings.org. The ripple effect of saving on a regular basis builds more stable families, communities and local economies. We're not just talking about an economic change, though. A culture of savings can breed generations of people lifting themselves out of poverty through their own dignified means.

What is the Impact of MatchSavings.org?

Only 25% of people in Mexico have access to a financial account, compared with 91% in the United States and 96% in Canada. And most people who have never accessed formal financial services live in rural areas, where it's estimated that just 5% of the population have had the opportunity to open a savings account or receive credit from a formal financial institution.

Building on the success of World Council of Credit Unions’ (WOCCU) larger microfinance program in Mexico, MatchSavings.org partnered with two credit unions in Veracruz state to help the working poor open their first savings accounts. People in these remote villages would normally have to travel up to three hours to reach the nearest financial institution. Instead, credit union employees made (and continue to make) the trek to the community so that their members can make more productive use of their transportation money and time.

Not only did MatchSavings.org participants save time and money, they learned the value of saving little-by-little to fulfill their daily needs and to realize their dreams — without incurring debt. Contributions through MatchSavings.org gave them the boost and encouragement to get started.

Results

In the first two rounds of the program, 66% of participants saved for housing; 27% for microbusiness; 4% for education and 2% for healthcare (which was discontinued in April 2010). Seventy-one percent of participants were women.

Did they continue to save? One year after the first-round savers had completed MatchSavings.org, we found that 99% (116 of 117) had continued to save. The average monthly deposit was US$9/month, compared to $15/month they had saved during the six-month program.

What other financial services did the graduated savers use? Within one year after completing the program, 71 (60%) of the first-round savers had applied for a loan. Of these, 20 obtained a subsequent loan, and two had received three separate loans. Average loan amounts were about half of the amount (US$600) that other members of the credit union had requested, indicating that MatchSavings.org was reaching people of lower economic means. Of the 145 second-round participants, 24% had requested a loan within one month after they completed the program.

Other Ways You Can Make a Difference

Learn about the importance of savings in your own life. What are your dreams? How could saving each day, week or month help you realize them? Find a credit union in your area to help get you started. Make a savings goal and commit to realizing it through regular deposits and discipline.

Look beyond savings. Credit unions are oftentimes thought of being just another option among an array of financial institutions, but they can mean the world in the lives of the working poor. World Council of Credit Unions (WOCCU), which developed and oversees MatchSavings.org, works with credit unions in developing countries to bring people the financial tools they need to pull themselves out of poverty.

The Worldwide Foundation for Credit Unions, WOCCU's charitable arm, funds community outreach programs for credit unions and their members. In addition to our work in Mexico, some of our innovative programs include building community-owned financial institutions in Afghanistan and bringing financial services to the rural poor in Kenya. Learn how you can support these programs